The goal of a header bidder/header bidding is to allow publishers to maximize their ad revenue by giving more demand sources the opportunity to bid on their inventory, and to allow advertisers to bid on a larger number of impressions. It is one of the most effective methods used to maximize website monetization, but can also improve the user experience by reducing the number of ad calls and latency on the page.
Traditionally, when a user visits a website, the ad server sends a request to the ad exchange to fill an ad slot on the page. The ad exchange then selects an ad from its inventory and sends it back to the ad server to be displayed on the page. If the ad exchange doesn’t reply with an ad, the exchange sends the request to another ad exchange until an ad is delivered. This is known as the “waterfall” approach, because it involves a sequential process of filling ad slots.
The waterfall setup works in the following way:
With header bidding solutions, the process is slightly different. It does not send a request to the ad exchange, instead it works in the following way:
Google AdSense is a program that enables website owners to display ads on their site and earn revenue through clicks or impressions. Header bidding, on the other hand, is a technique used by publishers to increase revenue from their ad inventory by allowing multiple ad demand sources to bid on their inventory simultaneously before making a final decision on which ad to display.
In other words, AdSense is a program that provides ads, while header bidding is a technology used by publishers to maximize revenue from the ads they display. The main difference is that AdSense is a product offered by Google, while header bidding is a technique that can be used with or without AdSense. Another important difference is in the reach of the respective solutions. If Google AdSense is described as a small pond, heading bidding would be an ocean.
Overall, while both header bidding and Google AdSense can be effective methods of integrating ads into a website, header bidding may be a better option for publishers who want to maximize their ad revenue, improve the user experience, and have greater control over the ad buying process.
While implementing header bidding can significantly increase your ad revenue, it can be a complex process. You may want to work with a trusted partner or technology provider to help you navigate through it. If you want to monetize your website using header bidding, but don’t have the time, resources, or know-how to do it, contact Holid and take care of everything in the below guide for implementing a header bidding solution.
Implementing header bidding involves several steps:
As we continue to witness the evolution of programmatic advertising, header bidding will likely remain a key component in this landscape, but its application and methodologies will inevitably change and evolve.
One trend we’re beginning to see is the shift towards server-side header bidding. This method aims to reduce the latency issues associated with client-side header bidding by moving the auction process from the user’s browser to the server side. This change could significantly enhance user experience and improve overall site performance.
The integration of artificial intelligence (AI) and machine learning (ML) technologies into header bidding strategies is on the rise, just as it is in most industries. These technologies can help automate and optimize the bidding process, potentially increasing efficiency and revenue.
Privacy is also a significant consideration for the future of header bidding. With changing regulations around data privacy and the phasing out of third-party cookies, the header bidding landscape will need to adapt. We can expect more privacy-compliant strategies to emerge, like contextual targeting and the use of first-party data.
As more publishers recognize the benefits of implementing a header bidder on their website, we might see the method adopted beyond just website ad inventory. It’s possible that header bidding will expand into other forms such as in-app ads, OTT, and Connected TV.
Sign up for Holid today. Holid is a publisher hub that has changed how website owners monetize their inventory. We help publishers take on new heights by aggregating the best adtech on the market.
Holid provide full service header bidding solutions that are easy to implement, strengthened by best-in-class advertising technologies, and connected with a carefully curated lists of advertisers tailored to your niche and needs. Calculate your website’s potential for revenue with our revenue calculator, or contact us to learn how we can help you monetize your website.
Header bidding is a technique used by publishers to increase the yield on their advertising inventory. It involves allowing multiple demand sources (ad exchanges, SSPs, and DSPs) to bid on ad impressions in real-time, before the ad server makes a decision about which ad to display.Traditionally, the ad server would make this decision based on a hierarchy of priorities, with the highest bidder getting the ad spot. With header bidding, all demand sources are able to bid on the ad impression simultaneously, leading to a more competitive process and potentially higher ad prices for the publisher.
Not necessarily.Header bidding can be implemented using either a first-price or a second-price auction model, depending on the preference of the publisher. Some publishers may choose to use a first-price auction because it allows them to maximize revenue by capturing the full value of the winning bid, while others may prefer a second-price auction because it can lead to lower effective CPMs (Cost Per Thousand impressions) for advertisers.
Header bidding and open bidding are both methods of integrating multiple demand sources into the ad serving process of a website. However, there are a few key differences between the two:
Overall, both header bidding and open bidding can be effective methods of integrating multiple demand sources into the ad serving process, but they differ in terms of timing, the bidding process, and implementation.
The goal of a header bidding wrapper is to simplify the process of integrating multiple demand sources into the ad serving process and to allow publishers to more easily manage and optimize their header bidding setup.
Google has deemed header bidding as an ”existential threat” internally. However, it is not without its flaws and there are a few potential disadvantages for publishers: